Ethereum News Today: Ethereum Surpasses Bitcoin as ETF Inflows Surge 25x on 12% Yield Edge

Ethereum has overtaken Bitcoin as the preferred asset for institutional inflows, marking a significant shift in capital allocation during the emerging altcoin season. Institutional investors, including ETFs and corporate treasuries, have funneled over $2.12 billion into Ethereum-based exchange-traded funds (ETFs) in recent weeks, surpassing Bitcoin’s inflows. Ethereum ETFs recorded $602 million in a single trading day, outpacing Bitcoin’s $523 million [1], while cumulative inflows from July 21–25 totaled $1.85 billion compared to Bitcoin’s $74 million [2]. BlackRock’s ETHA, the largest Ethereum ETF, led this trend, attracting $1.79 billion of the $2.4 billion in six consecutive days of inflows [4], a first-time reversal in favor of Ethereum over the firm’s Bitcoin ETF, IBIT [3].

This capital rotation reflects growing institutional confidence in Ethereum’s utility and yield potential. With Ethereum ETFs offering a 12% annualized basis trade yield—compared to Bitcoin’s 3%—investors are increasingly prioritizing staking returns and smart contract capabilities [2]. The iShares Ethereum ETF (ETH) further solidified Ethereum’s institutional appeal by securing the second-highest weekly ETF inflow rank, trailing only the Vanguard S&P 500 ETF [5]. This momentum aligns with broader market trends, as Bitcoin’s dominance fell from 65% to 59% in July 2025, signaling a reallocation of capital toward altcoins [6].

Industry participants, including Peter Thiel-backed BitMine and SharpLink Gaming, have also expanded Ethereum holdings, indicating strategic shifts in asset prioritization [6]. Analysts, such as On-chain Analyst Crypto Rover, attribute the trend to Ethereum’s competitive edge in yield generation and technological innovation, stating, “Capital is rotating out of Bitcoin and flowing into Ethereum, reinforcing the downtrend in BTC dominance” [6]. While no specific price forecasts are cited, sustained inflows may enhance Ethereum’s liquidity and price resilience, particularly as demand for staking and decentralized finance (DeFi) applications grows.

The shift underscores Ethereum’s evolving role in the crypto ecosystem, positioning it as a top-tier asset for institutional portfolios. With BlackRock and iShares leading the charge, Ethereum’s ability to outperform Bitcoin in key metrics—such as ETF inflows and spot trading volume—highlights its potential to reshape investment strategies in the digital asset space.

Source:

[1] [Ethereum Ready To Dethrone Bitcoin At BlackRock] (https://www.cointribune.com/en/ethereum-ready-to-dethrone-bitcoin-at-blackrock/)

[2] [Ethereum ETFs Outpace Bitcoin by 25x as 12% Basis Trade Drives 1.85B Inflows] (https://www.ainvest.com/news/ethereum-news-today-ethereum-etfs-outpace-bitcoin-25x-12-basis-trade-drives-1-85b-inflows-2507-5/)

[3] [BlackRock's Ethereum ETF Inflows Surpassed Its Bitcoin] (https://www.mitrade.com/insights/news/live-news/article-3-988889-20250726)

[4] [Ether ETFs Beat Bitcoin in Inflows for 6 Days Straight] (https://thecurrencyanalytics.com/altcoins/ether-etfs-attract-massive-inflows-surpassing-bitcoin-for-six-straight-days-187343)

[5] [iShares Ethereum ETF (ETH) Achieves 2 Spot in Weekly ETF Inflows] (https://blockchain.news/flashnews/ishares-ethereum-etf-eth-achieves)

[6] [Ethereum Overtakes Bitcoin in Spot Volume—Will Ozak AI...] (https://www.livebitcoinnews.com/ethereum-overtakes-bitcoin-in-spot-volume-will-ozak-ai-see-similar-capital-rotation/)